36. What is substitution effect an income increase leading to the outward budget line and IC price of a good change leading to the relative prices change and choice of individual to consume a cheaper good more both prices of goods change in the same direction and no change in consumption ratio O อื่นๆ: 37. What is 'not' correct about income effect? income effects results from changes in lower good prices Income effects results from the move in the budget constraint outward income effects results from the move in the budget constraint inward income effects can be seen along the same IC อื่นๆ:
36. What is substitution effect an income increase leading to the outward budget line and IC price of a good change leading to the relative prices change and choice of individual to consume a cheaper good more both prices of goods change in the same direction and no change in consumption ratio O อื่นๆ: 37. What is 'not' correct about income effect? income effects results from changes in lower good prices Income effects results from the move in the budget constraint outward income effects results from the move in the budget constraint inward income effects can be seen along the same IC อื่นๆ:
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.4P
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Question
Transcribed Image Text:36. What is substitution effect
an income increase leading to the outward budget line and IC
price of a good change leading to the relative prices change and choice of
individual to consume a cheaper good more
both prices of goods change in the same direction and no change in consumption
ratio
อื่นๆ:
37. What is 'not' correct about income effect?
income effects results from changes in lower good prices
Income effects results from the move in the budget constraint outward
income effects results from the move in the budget constraint inward
income effects can be seen along the same IC
O อื่นๆ:
Transcribed Image Text:34. What is correct statement about IC?
Marginal rate of substitution is constant along the normal IC
IC can be crossed
The lower IC line shows the higher preference.
The optimum choice is where the highest IC can touch the budget line
O อื่นๆ
35. When will the new optimum choice can occur?
when one has more income
when a relative price change
when price of a good fall
all are correct
O อื่นๆ:
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